TCS ‘delivers strong returns’

TOWN Centre Securities, the Leeds-based property investment and car parking company, today said it had delivered strong returns in a competitive letting market.

In the year ended June 30 2015, the company achieved a statutory profit before tax of £24.0m, compared with £27.4m the year before.

The company said it had achieved active capital recycling through sales of properties at Apperley Bridge and Victoria Gate for a total consideration of £9.7m. The sale of Goodramgate, in York, for £3.55m was completed in August 2015.

TCS said it had made good progress with enhancements to the Merrion Centre in Leeds. A franchise agreement for the Merrion Hotel has been signed with Ibis Styles and Marco Pierre White.

Commenting on the results, the chairman and chief executive Edward Ziff, said: “Retail valuations have continued to rise in the regions and we expect this to continue as the economic backdrop continues to improve.

“The letting market remains competitive but we continue to find opportunities to increase income in all areas of our portfolio and over the next couple of years our income will benefit from the transactions we have already concluded.

“This is particularly so in the Merrion Centre where the Merrion House deal is now underway.

“We intend to increase portfolio sales and purchase activity this year. We will continue our car park acquisitions programme as we have already seen this contributing positively to our profits.

“We will also complete our bank facility renewal; the banking panel has improved and we expect to achieve a reduced margin and subsequent reduction in average borrowing cost. Overall we look forward with confidence and are encouraged by the many profitable opportunities that we have to deliver attractive shareholder returns”.